LlamaLlamaDuck
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Post by LlamaLlamaDuck on Apr 30, 2019 19:18:32 GMT -5
My credit union MM serves as my EF and as a distribution center for savings transactions, with a modest interest rate. The MM was busier than usual this past month; I linked it to my Fidelity accounts and made some online transfers into my IRAs, in addition to the usual automatic biweekly transfers into a higher interest MM at another financial institution. There were seven outgoing transfers in all. I didn't think anything of it until I noticed that my MM was assessed a $10 "Reg D Fee" for exceeding the limit of six outgoing transfers. Live and learn: www.nerdwallet.com/blog/banking/how-regulation-d-affects-your-savings-withdrawals/I kind of had to snort at the following -
"Regulation D is the federal government’s way of ensuring that banks have the proper amount of reserves on hand and encouraging people to use savings accounts as they are intended: to save money."' and "How to maximize your savings - Avoiding the urge to withdraw your money from your savings account is only one factor in maximizing your savings. You’ll also want to find the best possible interest rate, so it grows even more quickly."
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phil5185
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Post by phil5185 on May 1, 2019 11:23:13 GMT -5
"""Avoiding the urge to withdraw your money from your savings account is only one factor in maximizing your savings"""
I don't want advice from my bank about when/where to spend my money, if they didn't refund that $10 I would be moving my accounts.
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Deleted
Joined: Mar 28, 2024 7:17:22 GMT -5
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Post by Deleted on May 1, 2019 11:35:02 GMT -5
"""Avoiding the urge to withdraw your money from your savings account is only one factor in maximizing your savings"""
I don't want advice from my bank about when/where to spend my money, if they didn't refund that $10 I would be moving my accounts.
That's a federal regulation though. All banks have a withdrawal limit on savings accounts.
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chen35
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Post by chen35 on May 1, 2019 11:37:46 GMT -5
Bank's get in big trouble if you go over the Reg D amount. There has to be an incentive for the customer to adhere to the limits.
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Post by The Walk of the Penguin Mich on May 1, 2019 11:39:27 GMT -5
"""Avoiding the urge to withdraw your money from your savings account is only one factor in maximizing your savings"""
I don't want advice from my bank about when/where to spend my money, if they didn't refund that $10 I would be moving my accounts.
That's a federal regulation though. All banks have a withdrawal limit on savings accounts. Yep. I learned about this when I got a note from my bank about this about 15 years ago. So my savings account is merely a holding account and I make bolus withdrawals rather than multiple ones.
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Deleted
Joined: Mar 28, 2024 7:17:22 GMT -5
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Post by Deleted on May 1, 2019 12:00:49 GMT -5
Since you are already at Fidelity have you considered holding that savings there in a higher yield money market account in either their cash management or brokerage account? As I understand it that would avoid the withdrawal limit and get you more interest. On the other hand it wouldn't be FDIC/NCUSIF insured.
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shanendoah
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Post by shanendoah on May 1, 2019 13:39:44 GMT -5
Whenever I go to do transfers from my savings accounts online, it tells me how many transfers I have done that month, with the specific note that I am limited to 6 transfers out. (There is no limit on the number of transfers into an account.)
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TheOtherMe
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Post by TheOtherMe on May 1, 2019 15:28:01 GMT -5
Whenever I go to do transfers from my savings accounts online, it tells me how many transfers I have done that month, with the specific note that I am limited to 6 transfers out. (There is no limit on the number of transfers into an account.) This is what my savings accounts do. It's a federal regulation. I don't think the bank can do anything about it. When I need to transfer from savings to checking, I do it in a lump sum, not in small amounts.
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Tiny
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Post by Tiny on May 1, 2019 16:06:55 GMT -5
10 years ago, I had a conversation with the bank I was getting a mortgage from - I had a savings account there but not a checking account. It was "expensive" to take their checking account it had high monthly fee (there was a large minimum balance requirement to avoid this fee) AND a shit ton of not easy to avoid fees based on routine banking.
I wanted to auto pay the mortgage and then a couple of other monthly "bills" and transfers from the savings account. It seemed like it would work - it was all electronic and scheduled. I'd transfer $$ from my paycheck to the savings account to accomplish this. Did I mention the savings account had no fees - as long as it had a $500 balance. The bank frowned upon my idea of using the savings account like a checking account - apparently because of that Reg D thing. I wound up opening a checking account (and closing the savings account) to accomplish what I wanted without having to have even more $$ tied up in two low interest accounts at this bank. Having the account got me a lower mortgage interest rate and then they gave me $250 "sign up" bonus for the already opened savings account. When I switched over to the checking account the bank let me keep the $250 and the lower mortgage rate (and I was able to avoid all the stupid fees on the crappy checking account).
If the banks didn't have that Fed regulation - there wouldn't be a difference between a "savings" account and a "checking" account , what with the advent of electronic banking.
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LlamaLlamaDuck
Junior Member
Joined: Dec 29, 2010 18:53:50 GMT -5
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Post by LlamaLlamaDuck on May 1, 2019 17:21:44 GMT -5
Since you are already at Fidelity have you considered holding that savings there in a higher yield money market account in either their cash management or brokerage account? As I understand it that would avoid the withdrawal limit and get you more interest. On the other hand it wouldn't be FDIC/NCUSIF insured. I hadn't made any transfers into my IRAs since their inception - one was a rollover from a job I had in the 80s, and the other was opened sometime in the 90s when I had a bit of spare cash - so none of this has been an issue until now. However, exploring Fidelity's cash management and/or brokerage accounts sounds like a good idea.
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phil5185
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Joined: Dec 26, 2010 15:45:49 GMT -5
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Post by phil5185 on May 2, 2019 8:10:46 GMT -5
""If you go over the limit, the bank or credit union can charge you a fee, close your account or convert it into a checking account." Note the "can".
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dannylion
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Post by dannylion on May 2, 2019 13:51:35 GMT -5
Whenever I go to do transfers from my savings accounts online, it tells me how many transfers I have done that month, with the specific note that I am limited to 6 transfers out. (There is no limit on the number of transfers into an account.) I get those notices, too. Apparently, the 6-transfer limit also applies to transfers among savings accounts in the same bank, which seems a little odd as the money is still on deposit in the same bank, not transferred out somewhere else.
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